Amgen, Inc. (AMGN), Onyx Pharmaceuticals, Inc. (ONXX): Monday’s Best Stocks

Page 1 of 2
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis. For the fourth-straight week it appears that the broad-based S&P 500 (SNPINDEX:^GSPC) is starting off on shaky ground. The culprits today appear to be weak U.S. economic data and a report from Dow Jones that has reignited U.S. debt-ceiling fears. Amgen, Inc. (NASDAQ:AMGN) While not often viewed as a huge report, the July U.S. durable-goods report (a measure of big purchase items like cars and appliances) was so bad -- a drop of 7.3% from the previous month -- that it certainly caught investors' attention. To abate some of this negativity, a 52% drop in civilian aircraft orders was a big component to these weak results, but it still could point to weak third-quarter GDP growth if spending on big-ticket items is beginning to dry up. The other concern came from Dow Jones, which reported that the U.S. Treasury will reach its current debt limit by mid-October. And we all know what that means, right? You bet: More Congressional bickering! The past few debt-limit crises have come down to the wire, with both parties kicking the can further down the road instead of working out a solution. This is one of those broad-topic issues that has the potential to affect all sectors if nothing is worked out. By day's end, the S&P 500 had digested all of this negative information and given up all of its gains, ending lower by 6.72 points (-0.40%) to close at 1,656.78. As should come as no surprise, biotechnology giant Amgen, Inc. (NASDAQ:AMGN) led the S&P 500 higher, gaining 7.7% after announcing the $10.4 billion ($125/share) all-cash purchase of Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX). With  Amgen, Inc. (NASDAQ:AMGN)'s pipeline aging, this deal gives it a fresh line of rapidly growing cancer-fighting compounds, including multiple myeloma drug Kyprolis, which could fetch $3 billion in annual sales at its peak. Based on my initial estimates that Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) could be worth as much as $145 a share, I think Amgen, Inc. (NASDAQ:AMGN) scored a nice value on Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) and would definitely suggest giving Amgen, Inc. (NASDAQ:AMGN) another look here even after its recent rally. Logistics company C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW), a new name to the best-performers list, added 2.9% today after announcing plans to increase its buyback authorization.
Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 30 percentage points in 13 months Learn how!

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!